SANDLER,e REIFF & YOUNG, P.F 50 E STREET,S.E., SUITE300 WASHINGTON,DC 20003 JOSEPHE. SANDLER TELEPHONE:(202) 479- 1 1 1 1 sandler@sandlerreifhom FACSIMILE:(202) 479- 1 1 1 5 NEILP. REIFF rei
[email protected] \ COUNSEL: JOHN HARDMYOUNG
[email protected] $$ October 17,2005 Kamau Philbert, Esq. Office of the General Counsel Federal ,Election Commission 999 E Street, N.W. Washington, D.C. 20463 Re: MUR5659 *;.. *;.. Dear M$. Philbert: The undersigned represent the Democratic Party of Hawaii and Yuriko Sugimura, as Treasurer (“DPH”), in the above-referenced MUR. This matter has been generated in response to an audit conducted by the Commission of the activities of the DPH during the 2002 election cycle. The Commission has found reason to believe that the DPH has violated the Federal Election Campaign Act of 1971, as amended, as follows: 1) the Party violated 2 U.S.C. 5 441b(a) by misdepositing two donations totaling $30,000 fiom prohibited sources into its federal account; 2) the Party violated 2 U.S.C. 5 441a(f) by misdepositing $36,000 in excessive contributions into its federal account and 3) the Party violated 2 U.S.C. 5 434@)(4)(H)(v)by failing to report $155,125 in disbursements that the Commission has presumed to be allocable expenses. I ! 2 I I I I I i BACKGROUND This matter was generated as a result of Commission audit of DPH’s financial records in connection with the 2002 election cycle. The facts of this matter relating to the alleged violations can only be understood in context of the circumstances surrounding the 2002 elections in the state of Hawaii.